average down
Definition
To buy additional shares in a long position as it moves down with the objective of reducing the average price per share. The wisdom of an average-down strategy is debatable. While many investors employ it as a means of lowering the breakeven price, some investment advisors caution against throwing additional money into a losing position. Compare to Average Up; Dollar Cost Averaging.
Related Articles
- An Economic View of Real Estate *
- Introduction to Buying a Car *
- Initial Public Offerings *
- Buying Stocks Using Growth Strategy *
- Can VAT Help America? *
- Installment Sale *
- The FTC and the Economy *
- Types of Retirement Plans *
Related Videos
http://www.businessdictionary.com/definition/average-down.html
